In the absence of debt, $\beta$ measures the volatility of a firm's financial return to changes in the general market's overall financial return.

Question

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This statement is true. F1F1F1S1F1F1F10, also known as the beta coefficient, measures the sensitivity of a firm's financial return to changes in the general market's overall financial return. When a firm has no debt, its beta coefficient represents the volatility of its financial return relative to the market.

In the Absence of Debt β\betaβ Measures the Volatility of a Firm's Financial Return to Changes

In the Absence of Debt $\beta$ Measures the Volatility of a Firm's Financial Return to Changes